Wool market maintains recent gains

The wool market maintained its recent gains at the latest sale in Port Elizabeth on Tuesday with the Cape Wools Merino Indicator closing the day up a marginal 0.6% at R114.68/kg (clean).

Cape Wools said in a statement that this was 2.7% higher than the opening sale of the season and was 2% up on the corresponding sale of the previous season.

Cape Wools said traders had stated that the weaker Rand at R11.10 to the US Dollar had “propped up the local market,” although the market had remained subdued “due to poorer demand from China”.

Traders also pointed out that this week’s offering had been “small and of poor quality” and that they expected next week’s offering to be similar. Some 7 324 bales were on offer on Tuesday with 97% sold.

The next sale is on October 1, when about 6 700 bales will be on offer. - metrominutes